According to local media reports, the negotiations between Thyssenkrupp Steel Europe, subsidiary of German steelmaker Thyssenkrupp Steel and Hamburg-based CE Capital Partners on the sale of Thyssenkrupp shares in Hüttenwerke-Krupp Mannesmann (HKM), the joint venture between Thyssenkrupp Steel, German steelmaker Salzgitter and French pipe manufacturer Vallourec, have failed.
As previously reported by SteelOrbis, Thyssenkrupp planned to divest its stake as part of its restructuring plan that would see the company’s annual capacity reduced from 11.5 million mt to 8.7-9 million mt in line with future market expectations. As Salzgitter and Vallourec also voiced their intention to sell, HMK faces closure unless an investor is found.
Thyssenkrupp stated that the company is open to negotiate with other potential buyers and several steel unions in Germany has expressed that HKM could become an independent steel producer after a possible sale and could meet the slab demand in Germany, reducing imports.
With two blast furnaces and a coking plant in Duisburg, HKM has an annual production capacity of 5.6 million mt of slab and round bars.
